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Introduction
Selling price is very sensitive for sales of any product that depends on the cost price. According to the selling price, the product selling price also attracts the customer for purchasing and it can help in the gain profits for this particular product purchasing. This task also discusses the formula of the selling price and their explanation. On the other hand, also discuss the mathematical expression of the selling price with examples. Based on this study, also discusses the significance of the selling price. Selling price is one of the most important factors for a product purchasing system in the business.
Main body
Discussion on selling price
Selling price involved in the percentage of profits on a particular product purchasing that depends on the cost price. Product selling price also attracts the customer for purchasing and it can help in the gain profits for this particular product purchasing. Selling price is a very important role in the business for purchasing the product and it can attract the customer to purchase. Selling a piece is very important for success and product price can have effects on the sales. Marketing price also depends on the selling price that can help in the development of the business. Customers can also understand the purchasing rate by this selling price.
High selling prices can attract the customer and sometimes consumers provide discounts on the selling price that can attract the customer and develop their business. Selling price is one of the most important factors for a product purchasing system in the business. Selling pierce is also represented as SP. It is a very important factor for the consumers and sellers that help to demand creating systems for particular products. Selling price is mainly determined by the help of the market analysis as well as customer demand. On the other hand, the lowest selling price can affect the company’s development and profitability.
Explain the formula of the selling price
Different types of formulas of the selling price occurred in the marketing process. The selling price formula also depended on the cost price and it can affect the profitability. Profit and loss are also determined by the selling price formula and it can be used in different data calculations as well as marketing analyses. Based on this selling price formula we can determine the profit rate as well as loss rate on the selling price. It can provide an understanding of the selling price relation with the cost price as well as profit and loss.
Formula
- Selling price= cost price + profit
- Selling price= marked/list price-discount
- Selling price= 100+profit/100*cost price
Selling prices are very sensitive issues for understanding the profit analysis. These all formulas can determine the selling price as well as the profit percentage of the product that affects the purchasing system.
Mathematical expression of the selling price with example
According to the selling price,
Profit= selling price- cost price
The mathematical expression of the selling price with example is given below,
Question
June marks all his products 40% above the cost price or listed price. After that, it offers a discount of 20% on the cost price. He will earn a profit of 20% then what is the percentage of the profit that he earns?
Solve
Assumed that, the cost price of the product 100
Therefore, the listed price = 100+40% of cost price
= 100+40
=140
However, selling price= cost price-discount
=140- 20% of 140
=140-140*20/100
=140-28
=112
Now, profit=selling price- cost price
=112-100
=12
So, the percentage of the profit is 12%, not 20%
Based on this mathematical expression we can easily determine any information about selling and it can help to understand the profit rate on selling.
Conclusion
According to the selling price, it is concluded that the selling price depends on the cost price of the product. It also concluded that selling price is a very important factor for market analysis. This price can attract the customer to purchase the product. Based on this study, it also concluded that the selling price is determined by the market analysis and customer demand. Selling price also plays an important role in determining the profit and loss percentage. On the other hand, it also concluded that determining the selling price is a very sensitive method for product purchasing that can provide ideas to their customer for the purchasing rate.
